CHAPTER 13 FAQs
+ When Is Debt for Chapter 13 Bankruptcy Discharged?
The debt is not discharged until payments have been completed based on the plan established by the Court. For a better understanding, speak to a bankruptcy attorney about the process.
+ What Is A Bankruptcy Trustee?
The bankruptcy trustee is appointed by the Court to perform the following duties:
- -Disburse payments under the plan
- -Question the debtor at the “meeting of creditors”
- -Oversee the certification process
- -Object to the plan proposed
- -Make a determination on the “disposable income test”
- -Make a determination on the “best interests of creditors test and Make a motion to dismiss the case for “bad faith” and other reasons:Chapter 13 bankruptcy is a complicated process. That’s why it’s important to work with a bankruptcy attorney that can advise you throughout the process.
+ What Is A “Meeting Of Creditors”?
This is a short meeting, conducted by the Trustee, to question you about your debts and assets as part of the Chapter 13 process. It is mandatory to attend this meeting, and your bankruptcy attorney will accompany you.
+ What’s the Chapter 13 “Disposable Income Test”?
This is a formula that begins by comparing your gross income to the state median for a family of your size. Once that’s established, there is a determination regarding your actual expenses and expense allowances based on IRS guidelines. The result will be what’s considered your disposal income that can be applied to debts to creditors under a Chapter 13 plan. These calculations can be complicated, so it’s important to work with an experienced bankruptcy attorney.
+ What’s the Chapter 13 “Best Interests Of The Creditors” test?
Part of the process of qualifying for a repayment plan under Chapter 13 is an analysis that requires that unsecured creditors are paid at least as much as they would be under Chapter 7. It’s important to speak to a bankruptcy lawyer about how this would impact your particular case.
+ Can I Transfer The Ownership Of My Antiques, Art or Boat To Somebody Else?
Transferring ownership to friends and relatives can cause your case to be dismissed as a “bad faith filing.” There can also be criminal penalties if you try to conceal these transfers. It’s important not to transfer any property without discussing it with your bankruptcy lawyer.
+ Are There Differences In What’s Dischargeable Under Chapter 7 and 13?
Marital property settlement debts can be discharged under Chapter 13, but not Chapter 7. Certain types of IRS debt and debt caused by fraud can also be dischargeable under Chapter 13. Student loans, child support and alimony are not dischargeable for either type of bankruptcy filing. It’s important to speak to an experienced bankruptcy lawyer about what you can discharge.
+ Can The Bankruptcy Trustee Object To Your Chapter 13 Plan?
Yes, but a plan that you carefully work out with an experienced bankruptcy attorney is unlikely to trigger an objection. If the trustee does object, it is usually resolved before the confirmation hearing.
+ What’s The Impact On My Credit?
Chapter 13 bankruptcy will remain on your credit report for ten years, but most filers are able to obtain credit at market rates anyway. It’s important to speak to an experienced bankruptcy attorney about your credit life after bankruptcy and your ability to obtain car loans, leases and mortgages.
+ What is a “Co-Debtor Stay”?
When a Chapter 13 repayment plan pays a debt in full, the creditor must stop all collection activity against a non-filing co-debtor.
+ What Is Chapter 13 Lien Stripping?
When the amount that’s owed on a senior mortgage is greater than the value of the property, it’s sometimes possible to strip away junior mortgages. It’s important to work with an experienced bankruptcy attorney that knows how to handle this complicated process.